DFSA CEOIan Johnston, on prioritising outcome-focused, risk-based regulation and more. AN ITP MEDIA GROUP PUBLICATION FEBRUARY 2024 • ISSUE 01 TRUST, INTEGRITY, COMPLIANCE fi nancemiddleeast.comFebruary 2024 | 3 EDITOR’S LETTER W elcome to the inaugural edition of Finance Middle East, where we delve into the heart of the region’s fi nancial landscape to bring you insightful perspectives, interviews and features that capture the dynamic essence of the industry. In our cover story, we sit down with Ian Johnston, the CEO of Dubai Financial Services Authority, who shares his thoughts on the delicate balance required for eff ective supervision. He discusses safeguarding consumer interests, upholding fi nancial stability and preserving market integrity, all while fostering a supervisory environment that nurtures innovation and the growth of benefi cial products and services. Our spotlight feature navigates the Middle East’s economic prowess, shedding light on its transformative phase in the trade and investment landscape. As the region continues to captivate global attention, we explore the factors driving this growth and the opportunities it presents. Additionally, this edition features exclusive interviews with key fi gures from Binance, Investcorp, the Abu Dhabi IPO Programme, Hub71 and more. Gain valuable insights into their perspectives on the industry, market trends and the future of fi nance in the Middle East. We invite you to immerse yourself in the engaging content we have curated for you. Finance Middle East is not just a brand, it’s your guide to staying connected to the pulse of fi nance in this dynamic and ever-evolving region. Happy reading! Nivetha Dayanand Editor, Finance Middle Eastfi nancemiddleeast.com4 | February 2024 CONTENTS 16 10 20 26 OIL INDUSTRY’S TENTATIVE OPTIMISM AMIDST CHANGING TIMES Analysing the factors that infl uenced the energy sector’s fi nancial forecasts for 2024 GULF BETS ON GREEN, GLITZ AND GOALS TO LURE POST-OIL INVESTORS Middle East undergoes economic shift with non-oil growth and diversifi cation DFSA EYES DIGITAL ASSETS, CYBERSECURITY AND ESG IN 2024 REGULATORY PUSH Looking beyond proactive compliance and tech innovation FOR BINANCE FZE, IT IS BUSINESS AS USUAL Post-settlement, the cryptocurrency exchange emphasises on global compliance measures 10 20 16 26fi nancemiddleeast.comFebruary 2024 | 5 42 36 50 54 UAE FAMILY BUSINESSES FLOCK TO IPO MARKET Family businesses in the UAE are preparing for an IPO boom INVESTCORP TARGETS JAPAN’S $14 TRILLION SAVINGS MARKET Bahrain’s Investcorp expands in Japan’s lucrative investment market UAE BOARDS ARE GETTING YOUNGER AND MORE DIVERSE Enhanced board diversity and leadership transparency insights ABU DHABI’S INNOVATION HUB THRIVES ON STARTUPS AND FAMILY INVESTORS Hub71 pioneers tech investments, bridging family offi ces and startups for dynamic growth 36 50 54 42fi nancemiddleeast.com6 | February 2024 PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London, Mumbai, Riyadh & Geneva ITP MEDIA GROUP CEO: Ali Akawi Managing Director: Alex Reeve EDITORIAL Group Editor:Kate-Lynne Wolmarans Tel: +971 4 444 3541 email: kate.wolmarans@itp.com Editor:Nivetha Dayanand Tel: +971 4 444 3887 email: nivetha.dayanand@itp.com Deputy Editor:Beatriz Valero Tel: +971 4 444 3413 email: beatriz.valero@itp.com ART Art Director: Amjad Ayche Art Editor: Tofi q Memon Contributing Designer: Muhammed Nahas ADVERTISING Group Commercial Director: Anup Nagpurkar Tel: +971 4 444 3573 email: anup.nagpurkar@itp.com Senior Commercial Manager: Ines Ben Rejeb Tel: +971 4 444 3223 email: ines.benrejeb@itp.com PHOTOGRAPHY Videographer:Muhammad Kaleem Senior Video Editor:Liju Cheruvathur Social Media & Production Manager: Andy Ruedas PRODUCTION Production Manager:Denny Kollannoor Production Coordinator: Manoj Mahadevan Senior Image Editor: Emmalyn Robles DISTRIBUTION Distribution Coordinator: Avinash Pereira Circulation Executive: Rajesh Pillai MARKETING Director of Awards & Marketing:Daniel Fewtrell ITP GROUP CEO: Ali Akawi CFO: Toby Jay Spencer-Davies The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. 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Recognising women achievers driving growth and positive change in the Kingdom of Saudi Arabia KSA Women Achievement Awards 2024 For commercial and event inquiries: Tel: +971 4 444 3460 Email: events@arabianbusiness.com Scan to visit website March 3, 2024, 7pm-11pm VOCO, Riyadh, KSA Nominations Now Open Submission deadline: February 16, 2024News fi nancemiddleeast.com8 | February 2024 D ubai has recently introduced a AED 500 million initiative to propel the global expansion of small and medium-sized enterprises (SMEs) established within the emirate. The Dubai International Growth Initiative is accessible to all SMEs founded in Dubai, irrespective of the owner’s nationality. Further details on the fi nancing program are slated to be announced in February. “The Dubai International Growth Initiative will support the global expansion of SMEs founded in Dubai,” said HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai. “Small and medium-sized enterprises play a vital role in the emirate’s economy, comprising 95% of registered businesses.” “The consistent and robust support for entrepreneurs, investors and SMEs refl ects Dubai’s business-friendly environment, making it an attractive destination for local and global investments,” Sheikh Hamdan added. Launched on January 28, the Dubai International Growth Initiative is a collaborative eff ort between the Government of Dubai and Emirates NBD. “Dubai has launched several initiatives aimed at empowering businesses, under the guidance of HH Sheikh Mohammed bin Rashid Al Maktoum,” said HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance. “Among these, the Dubai International Growth Initiative, which allocates DUBAI UNVEILS AED 500 MILLION INITIATIVE TO DRIVE GLOBAL EXPANSION OF LOCAL SMES AED 500 million to support SMEs, is a strategic commitment to the future development of Dubai’s economy.” “Facilitating the sustainable global expansion of SMEs is a priority for the government in line with the D33 Agenda. These businesses play a pivotal role in the emirate, employing over 60% of the workforce,” he added. Emirates NBD will extend fi nancing to eligible companies at competitive rates, aligning with the Emirates’ Interbank Off ered Rate (EIBOR) without additional margin. A joint steering committee featuring representatives from the Government of Dubai and Emirates NBD will guide the initiative, selecting eligible SMEs, overseeing implementation and ensuring success in meeting the emirate’s strategic objectives. News fi nancemiddleeast.comFebruary 2024 | 9 T he global Islamic fi nance market is set to reach $4.9 trillion by 2025, according to Yazrin Syakhairi, Malaysian Trade Commissioner, under the Trade Section of the Consulate General of Malaysia in Hong Kong (MATRADE). Speaking on the sidelines of the Asian Financial Forum (AFF) in Hong Kong, Syakhairi told the Emirates News Agency (WAM) that the Islamic fi nance SAUDI ARABIA’S MIS ACQUIRES $5 MILLION STAKE IN OPENAI ISLAMIC FINANCE MARKET SET TO REACH $4.9 TRILLION BY 2025 The move follows a board decision to set up $11 million fund to invest in AI market is witnessing signifi cant and rapid growth worldwide, driven by green and ethical fi nance. The Commissioner also stressed the rise of fi nancing tools such as Sukuk or Islamic bonds, which can then be listed on fi nancial markets in Hong Kong, Dubai and Kuala Lumpur. Over the past four years, assets in Islamic banking have surged from $1.8 trillion to $2.8 trillion in 2023 and are expected to grow by around 10% by the end of 2024, according to earlier estimates by S&P Global Ratings. Gulf Cooperation Council (GCC) nations are already pivotal in the sector’s growth. In 2022 alone, the region spurred 92% of the growth in Islamic banking assets, with Saudi Arabia and Kuwait as the industry leaders. A l Moammar Information Systems (MIS) has invested $5 million (SAR 18.8 million) in OpenAI, the Microsoft-backed company that rose to fame after the launch of artifi cial intelligence (AI) chatbot ChatGPT. The deal valued OpenAI at $86 billion (SAR 322.5 billion). The stake was acquired through a sale round of OpenAI employee shares, according to a statement published in the Saudi Stock Exchange. The deal was advised by Decisive Capital Management, Geneva, Switzerland. Earlier this month, MIS’ board of directors approved a decision to allocate SAR 40 million ($10.7 million) to set up an investment portfolio to invest in international AI companies in order to “take advantage of the growth opportunities in the fi eld”. In January, the fi rm invested $5 million (SAR 18.8 million) in AI fi rm Anthropic. OpenAI is the leading artifi cial intelligence company, globally recognised for its pioneering work in Large Language Models (LLMs) with ChatGPT, redefi ning the landscape of natural language understanding and innovation. Assets in Islamic banking are expected to grow by around 10% by the end of 2024Next >